New Fortress inks deal for LNG power plant in Sri Lanka

Wes Edens-led New Fortress Energy has signed a deal to develop a new power plant in Sri Lanka that would get fuel from a planned LNG import facility off the coast of Colombo.

NFE said in a statement on Tuesday it signed a memorandum of understanding with Lakdhanavi, a private company in Sri Lanka, to develop a 350 MW power plant in the Kerawalapitiya power complex located in Colombo, Sri Lanka.

The government of Sri Lanka has previously awarded Lakdhanavi a 20-year power purchase agreement through a competitive tender to provide electricity to the national grid.

To remind, US-based NFE said last week it had signed a framework agreement with the government of Sri Lanka to build the country’s first LNG import terminal.

The terminal would supply gas to the existing 300 MW Yugadanavi power plant, located in the Kerawalapitiya power complex, but also to this new facility.

NFE said in the statement it would utilize the same LNG terminal to supply natural gas to this new 350 MW power plant.

These two power plants total approximately 650 MW within the Kerawalapitiya power complex.

In addition, NFE said the new memorandum with Lakdhanavi was non-binding, and actual terms of any future definitive agreements may differ from the terms of the deal.

“This partnership builds on our efforts to accelerate Sri Lanka’s transition to cleaner, cheaper energy,” said Wes Edens, chairman and CEO of NFE.

“This development will further advance the introduction of natural gas and add additional modern power infrastructure,” he said.

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